Edmonton, north London, October 1, 2025
News Summary
The construction sector is under mounting pressure as Large Panel System (LPS) residential blocks trigger evacuations, buyouts and borough-level decommissioning after inspections found cracking, thermal movement and fire-safety risks. Councils face high remediation bills and in some cases opt to demolish or sell affected stock. Industry advisers and insurers are responding with new risk tools — including parametric cover, captives and pre-arranged capacity — while contractors seek contract models that better balance risk. Workforce shortages, rising costs and supply-chain strains compound the challenge, leaving residents, leaseholders and subcontractors facing disruption and financial stress.
Immediate evacuations and long-term industry alarms as concrete-panel blocks face new safety actions
What happened: Tenants/leaseholders were told to leave Walbrook House in Edmonton, north London, because it was built with Large Panel System (LPS) concrete. Several other high-rise blocks built from similar prefabricated concrete panels have been subject to urgent moves and buyouts after inspections flagged structural cracks, fire-compartmentation failures and other risks. Councils have moved tenants and offered buyouts to leaseholders amid debate over whether remediation or decommissioning is the right route.
Scale and immediate effects
Local authorities moved hundreds of tenants and began negotiating buyouts for leaseholders while switching gas supplies off in affected blocks and replacing heating with electric systems. Some leaseholders reported having to pay for new boilers and said they were not fully informed about building risks when buying their flats. Reports of anxiety and other mental health impacts from the sudden disruption were common among residents.
Why councils chose decommissioning
One council decided in April to decommission all LPS blocks in the borough and either demolish or sell them because remediation works were said to be more than £30 million. Councils cited high remediation cost, major disruption to residents and long-term uncertainty over safety as reasons to opt for decommissioning, while some residents said buyout offers would not buy a comparable local home.
Historical context and fire safety concerns
Concerns about LPS date back decades after an early tower partial collapse prompted advice to strengthen similar buildings. Later national reviews and letters to local authorities raised LPS and other building-safety risks again after major tower-fire incidents. Degrading concrete panels, thermal movement, widespread cracking, damp and breakdowns in compartmentation are now linked to elevated fire risk and potential structural vulnerability in some blocks.
Subsequent building controls and resident safeguards
In some blocks, councils introduced waking watches, banned gas bottles and battery-powered mobility devices in communal areas, and posted warning signage about e-bikes and e-scooters. Authorities described buyout packages that include market-value offers, home loss and disturbance payments, and coverage of fees, and they said shared-equity and rehousing options were available where applicable.
Industry risk landscape and the link to construction insurance
Risk and insurance advisory firms underline how structural issues, climate pressures, rising cost and supply-chain constraints are reshaping construction risk profiles. Advisory firms say understanding current and emerging risks allows design of a considered risk management framework balancing retention, management, and transfer needs. They point to digitalization, climate risks, rising construction costs, supply chain choke points and cyber threats as current challenges shaping contractor exposures.
Notable industry facts: Marsh says it brings an unmatched combination of industry-specific expertise, deep intellectual capital, and global experience to risks clients face. Marsh says its claims team consists of more than 100 claims handlers, including former insurers and loss adjustors. In 2024, Marsh placed more than US$6 billion in construction insurance premiums. Marsh says its team of over 1,000 construction professionals operate in more than 130 countries.
Mace positions construction management as a route to detailed planning, clear execution and focused risk allocation on major projects, citing experience on major railway stations, stadiums and large cultural projects. Mace emphasizes meticulous phase planning, interface management and collaboration with supply-chain partners to reduce surprises and delays.
Aon highlights near-term volatility across construction and infrastructure, workforce shortages, material shifts such as mass timber and concrete alternatives, and geopolitical pressures that can reallocate public spending. Parametric is an alternative solution that has grown in utilization to insure against a variety of perils in any market conditions, the advisory material notes. Aon also points to the need for contract review and broker expertise because insurance responses depend on contract setup and jurisdictional differences in how policy conditions apply.
Workforce and productivity pressures
Workforce shortages are prominent: nearly 1 in 4 construction workers are older than 55. In February 2024, Canadian construction employment fell by 0.6 percent year-over-year. The U.S. construction industry needs to attract half a million new workers in 2024 to balance supply and demand. With fewer and less skilled workers, productivity suffers and job-site safety is put at risk, increasing the industry’s reliance on risk management tools and alternative insurance structures.
Emerging technologies and new liability questions
AI, automation and self-operating machinery on jobsites can transform delivery and asset management but introduce new liability questions, such as responsibility in accidents involving self-driving equipment. Advisory materials recommend firms consider parametric, captive and alternative risk transfer solutions to fill coverage gaps, and to align risk strategies with financial stability and operational resilience.
Bottom line for builders, owners and residents
Structural ageing of certain prefabricated systems, combined with evolving safety standards and tighter insurance markets, means some blocks are likely to face either extensive remediation or decommissioning. Contractors, project owners and councils are urged to review contracts, engage specialist brokers and adopt data-driven risk programs. Residents displaced by urgent safety decisions face immediate housing and financial pressures that councils and support services must address.
FAQ
What happened at Walbrook House?
Tenants/leaseholders were told to leave Walbrook House in Edmonton, north London, because it was built with Large Panel System (LPS) concrete.
Why did a council decide to decommission LPS blocks?
Enfield Council decided in April to decommission all LPS blocks in the borough and either demolish or sell them because remediation works were said to be more than £30 million.
Were residents informed about LPS risks when they bought homes?
Some residents claim they were not fully informed about the risks of LPS buildings when buying flats.
How large is Marsh’s construction insurance activity?
In 2024, Marsh placed more than US$6 billion in construction insurance premiums.
How big is Marsh’s construction team?
Marsh says its team of over 1,000 construction professionals operate in more than 130 countries.
What does Marsh say about its expertise?
Marsh says it brings an unmatched combination of industry-specific expertise, deep intellectual capital, and global experience to risks clients face.
How many claims handlers does Marsh say it has?
Marsh says its claims team consists of more than 100 claims handlers, including former insurers and loss adjustors.
What alternative insurance solution has grown in use?
Parametric is an alternative solution that has grown in utilization to insure against a variety of perils in any market conditions.
What workforce facts should construction leaders note?
Nearly 1 in 4 construction workers are older than 55.
What recent employment trends were reported in Canada?
In February 2024, Canadian construction employment fell by 0.6 percent year-over-year.
What does the U.S. need for construction workforce in 2024?
The U.S. construction industry needs to attract half a million new workers in 2024 to balance supply and demand.
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Key features at a glance
| Topic | Key point |
|---|---|
| LPS evacuations | Tenants/leaseholders were told to leave Walbrook House in Edmonton, north London, because it was built with Large Panel System (LPS) concrete. |
| Council action | Enfield Council decided in April to decommission all LPS blocks in the borough and either demolish or sell them because remediation works were said to be more than £30 million. |
| Resident impacts | Some residents claim they were not fully informed about the risks of LPS buildings when buying flats; tenants report anxiety and housing insecurity. |
| Large broker activity | In 2024, Marsh placed more than US$6 billion in construction insurance premiums. |
| Marsh capacity | Marsh says its team of over 1,000 construction professionals operate in more than 130 countries. |
| Marsh claims team | Marsh says its claims team consists of more than 100 claims handlers, including former insurers and loss adjustors. |
| Alternative insurance | Parametric is an alternative solution that has grown in utilization to insure against a variety of perils in any market conditions. |
| Workforce pressure | Nearly 1 in 4 construction workers are older than 55; The U.S. construction industry needs to attract half a million new workers in 2024 to balance supply and demand; In February 2024, Canadian construction employment fell by 0.6 percent year-over-year. |
Deeper Dive: News & Info About This Topic
Additional Resources
- Marsh: Construction
- Wikipedia: Construction management
- BBC: Walbrook House evacuation / LPS concerns
- Google Search: Walbrook House LPS evacuation
- Aon: How North American construction contractors can mitigate emerging risks
- Google Scholar: construction risk mitigation
- WTW: Renewable energy and construction risks
- Encyclopedia Britannica: renewable energy construction
- The Conversation: Britain’s net-zero construction workforce at risk of burn-out
- Google News: construction workforce burnout
Author: Construction CA News
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